In the short run, there is a direct relationship between:
a. the actual price level and nominal GDP, other things constant.
b. the profits and potential output supplied, other things constant.
c. the cost of production and the actual profit earned by firms, other things constant.
d. the actual price level and real GDP supplied, other things constant.
d
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Which of the following helps in reducing the problem of adverse selection in health insurance markets?
A) Insurance mandates B) High premiums C) High rates of taxation D) Insurance coverage
Which of the following would be most likely to cause an increase in the wage rate for a particular job?
a. A decrease in the amount of training needed to perform this job. b. An increase in the danger of this job. c. A decrease in the danger of this job. d. An improvement in the working conditions associated with this job. e. An increase in the number of workers with the skills for this job.
In the cost-benefit analysis of public goods, the benefits
A. Are more easily estimated than the costs. B. Can be only roughly estimated using highly subjective techniques. C. Can be accurately measured using the market price of the public good. D. Can be accurately measured by ballot box economics.
Refer to the table. A decrease in government purchases of $5 would:
A. increase real GDP by $5.
B. increase real GDP by $10.
C. decrease real GDP by $5.
D. decrease real GDP by $15.